Optimal bail out policy, conditionality and constructive ambiguity

This paper addresses the issue of the optimal behaviour of the Lender of Last Resort (LOLR) in its microeconomic role regarding individual financial institutions in distress. It has been argued that the LOLR should not intervene at the microeconomic level and let any defaulting institution face the market discipline, as it will be confronted with the consequences of the risks it has taken. By considering a simple costbenefit analysis we show that this position may lack a sufficient foundation. We establish that, instead, uder reasonable assumptions, the optimal policy has to be conditional on the amount of uninsured debt issued by the defaulting bank. Yet in equilibrium, because the rescue policy is costly, the LOLR will not rescue all the banks that fulfill the uninsured debt requirement condition, but will follow a mixed strategy. This we interpret as the confirmation of the "creative ambiguity" principle, perfectly in line with the central bankers claim that it is efficient for them to have discretion in lending to individual institutions. Alternatively, in other cases, when the social cost of a bank's bankruptcy is too high, it is optimal for the LOLR to bail out the insititution, and this gives support to the "too big to fail" policy.

Why did modern trade fairs appear?

According to our interpretation, modern trade fairs started in Europe during the FirstWorld War and in its immediate aftermath. With the closing of trade movements duringthe war, many cities had to resort to the old medieval tradition of providing especialpermits to traders to guarantee them personal protection during their trade meetings.During the tough post war crisis many more cities typically industrial districts-discovered in the creation of trade fairs a powerful competitive tool to attract markettransactions. We compare these developments with the remote origins of fairs, as, inboth cases, trade fair development is a reaction to the closing of free markets under thepressure of political violence.

Foreign direct investments and spillovers through workers' mobility

We analyze a model where a multinational firm can use its superiortechnology in a foreign subsidiary only after appropriate trainingof local managers. Technological spillovers from foreign directinvestment arise when such managers are later hired by a localfirm. Benefits for the host economy may also take the form of therent that trained managers receive by the foreign affiliate toprevent them from moving to local competitors. We study conditionsunder which technological spillovers occur. We also show that undercertain circumstances the multinational firm might find it optimalto resort to export instead of foreign direct investment, to avoiddissipation of its intangible assets.

Calibration and application of the MN2D dynamics model to the avalanches of Las Leñas (Argentina)

During the winters of 1999 and 2000 large avalanches occurred in the ski resort of Las Leñas (Los Andes, Mendoza, Argentina). On 8 September 1999 an avalanche of new, dry snow ran over a path with a 1000 m vertical drop. On 30 June and on 1 July 2000 five avalanches of similar vertical drop, which start with new snow, entrained very wet snow during their descent, and evolved into dense snow avalanches. To use the MN2D dynamics model correctly, calibration of model parameters is necessary. Also, no previous works with the use of dynamics models exist in South America. The events used to calibrate the model occurred during the winters of 1999 and 2000 and are a good sample of the kind of avalanches which can occur in this area of the Andes range. By considering the slope morphology and topography, the snow and meteorological conditions and the results of the model simulations, it was estimated that these avalanches were not extreme events with a return period greater than one hundred years. This implies that, in natural conditions, bigger, extreme avalanches could happen. In this work, the MN2D dynamics model is calibrated with two different avalanches of the same magnitude: dry and wet. The importance of the topographic data in the simulation is evaluated. It is concluded that MN2D dynamics model can be used to simulate dry extreme avalanches in Argentinean Andes but not to simulate extreme wet avalanches, which are much more sensitive to the topography.

The economics of infertility

Infertility is a growing issue that affects thousands of Spanish couples; increasingly there are more and more people who cannot raise a family by themselves. Instead they have to resort to ART, adoption -local or international- or surrogacy abroad, a practice that many couples consider but that isn’t legalized in Spain. In this paper we have broken down each option in detail by analysing the market, differentiating its variants and specific steps, calculating its “price” and suggesting possible improvements that could be made from an economic perspective. We end our paper with the “SWOT” analysis of a hypothetical surrogacy market in Spain by calculating an estimated price, using the US as a reference, and the degree of acceptance it would have, based on the results of random surveys.

Relaciones de complacencia y deberes para con los invitados

En la STS, 1a, 17.7.2007 (RJ 2007\4895, MP: Francisco Marín Castán), el Tribunal Supremo sostiene que los daños que sufre una amiga de los demandados en el inmueble de éstos al tropezar con un juguete abandonado en el suelo del pasillo, insuficientemente iluminado, no son indemnizables, porque dada la especial relación de confianza entre las partes, ese nivel extremo de diligencia no es exigible. El Tribunal parece aplicar al caso un patrón de diligencia quam in suis, la que despliega uno en sus propios asuntos, que permitiría limitar la responsabilidad a los casos de dolo o culpa grave. El trabajo comenta la sentencia y presenta, además, la clasificación entre invitee, licensee y trespasser que el Common Law norteamericano ha utilizado tradicionalmente para delimitar los niveles de cuidado de propietarios (o poseedores) de inmuebles y que el borrador No. 6 del Restatement (Third) of Torts, de 12.9.2007, ha simplificado, añadiendo a la regla tradicional de No Duty to Trespasser la de una negligencia simple para los Innocent Trespasser.

Estacions termals en zones rurals, serveis associats i titulacions oficials

El turisme rural, l’esport i la salut han adquirit de forma progressiva en els últims anys una importància cada vegada més gran. Una part creixent de la població ha anat incorporant de mica en mica dies de descans i repòs durant tot l’any. Aquesta realitat és deguda, parcialment, a l’augment del temps lliure i a la consideració del seu gaudi com un element per a la millora de la qualitat de vida. El turisme rural, a causa del canvi de valors experimentat en la societat contemporània, s’interrelaciona amb altres productes, com ara el turisme termal i les activitats esportives realitzades en contacte amb la natura, igual que amb altres serveis del sector del lleure, com ara l’espectacle, el joc, la cultura, etc. Aquesta situació determina la necessitat de plantejar sistemes de gestió professionals i aplicar estratègies que permetin de generar factors competitius i diferenciadors. Les empreses turístiques que han adoptat el paradigma empresarial de la gestió de qualitat total es caracteritzen per oferir qualitat de servei, i per assolir aquesta qualitat cal disposar d’un equip d’especialistes altament qualificats i experimentats. El propòsit d’aquest treball és analitzar les titulacions oficials relacionades amb les estacions termals en zones rurals i els serveis associats.

Entorn al testament de Brunissèn d'Alentorn i alguns costums funeraris de la Lleida medieval

In this research from the late medieval period, we want to analyze diferent aspects related to funerary world through Brunissèn d’Alentorn’s will. The document is compared with other wills from Lleida’s area that acquire knowledge to these customs, for instance, the draps d’or’s uses. These were provided of deceased’ heraldry, and were comissioned to cover the tomb. Also, in Lleida’s case, they were used to decorate the ancient cathedral’s presbitery during the main festivities, and the patrons’ wedding bed. Artistic patronage, social prestige, family arms ostentation, pomp and devotion are other aspects that would be emphasized in this tour, just as the private devotions in the chapels and altars that were founded regarding this topic.

Estaciones termales en zonas rurales, servicios asociados y titulaciones oficiales

El turismo rural, el deporte y la salud han venido adquiriendo de forma progresiva en los últimos años una importancia cada vez mayor. Una parte creciente de la población ha ido incorporando paulatinamente días de descanso y reposo durante todo el año. Esta realidad es debida, en parte, al aumento del tiempo libre y a la consideración de su disfrute como un elemento para la mejora de la calidad de vida. El turismo rural, debido al cambio de valores sufrido en la sociedad contemporánea, se interrelaciona con otros productos como el turismo termal y las actividades deportivas realizadas en contacto con la naturaleza, al igual que con otros servicios del sector ocio, como pueden ser el espectáculo, el juego, la cultura, etc. Esta situación determina la necesidad de plantear sistemas de gestión profesionales y aplicar estrategias que permitan generar factores competitivos y diferenciadores. Las empresas turísticas que han adoptado el paradigma empresarial de la gestión de calidad total se caracterizan por ofrecer calidad de servicio, y para alcanzar dicha calidad es necesario disponer de un equipo de especialistas altamente cualificados y experimentados. El propósito de este trabajo es analizar las titulaciones oficiales relacionadas con las estaciones termales en zonas rurales y los servicios asociados.

Evaluación de un artículo científico

El proceso de revisión y evaluación de manuscritos, conocido como arbitraje científico o peer review, supone actualmente un paso que se considera necesario para la divulgación de los avances científicos de una determinada disciplina. Cuando una revista recibe un artículo, sus editores recurren a revisores expertos que, después de la lectura detenida del manuscrito, evalúan la idoneidad de su publicación, en este trabajo se describe el proceso editorial de un artículo y se muestran los ítems por los cuales se evalúan los artículos.

Using vegetation to characterize the avalanche to Canal del Roc Roig, Vall de Núria (Eastern Pyrenees, Spain)

Avalanche hazard maps of high accuracy are difficult to produce. For land-use planning and management purposes, a good knowledge of extreme run-out zones and frequencies of avalanches is required. In the present work, vegetation recognition (especially focused on Pinus uncinata trees) and dendrochronological techniques are used to characterize avalanches that have occurred in historical times, helping to determine both the extent of large or extreme avalanches and their occurrence in time. Vegetation was studied at the Canal del Roc Roig (eastern Pyrenees, Spain) avalanche path. The avalanches descending this path affect the railway that reaches the Vall de Núria resort and the run-up to the opposite slope. During winter 1996, two important avalanches affecting this path were well documented. These are compared with the results of the vegetation study, consisting of an inventory of flora, the recording of vegetation damages along eight transverse profiles at different altitudes on the path and a dendrochronological sampling campaign. The data obtained contributed to a characterization of the predominant snow accumulation in the starting zone, the 1996 avalanches and the range of frequencies of large avalanches. Also, traces of avalanches that increase the path mapped in the avalanche paths map published by the Institut Cartogràfic de Catalunya in 2000 were identified, improving the initial existing information.

Using vegetation to characterize the avalanche to Canal del Roc Roig, Vall de Núria (Eastern Pyrenees, Spain)

Avalanche hazard maps of high accuracy are difficult to produce. For land-use planning and management purposes, a good knowledge of extreme run-out zones and frequencies of avalanches is required. In the present work, vegetation recognition (especially focused on Pinus uncinata trees) and dendrochronological techniques are used to characterize avalanches that have occurred in historical times, helping to determine both the extent of large or extreme avalanches and their occurrence in time. Vegetation was studied at the Canal del Roc Roig (eastern Pyrenees, Spain) avalanche path. The avalanches descending this path affect the railway that reaches the Vall de Núria resort and the run-up to the opposite slope. During winter 1996, two important avalanches affecting this path were well documented. These are compared with the results of the vegetation study, consisting of an inventory of flora, the recording of vegetation damages along eight transverse profiles at different altitudes on the path and a dendrochronological sampling campaign. The data obtained contributed to a characterization of the predominant snow accumulation in the starting zone, the 1996 avalanches and the range of frequencies of large avalanches. Also, traces of avalanches that increase the path mapped in the avalanche paths map published by the Institut Cartogràfic de Catalunya in 2000 were identified, improving the initial existing information.

Is Self-employment a Way to Escape from Skill Mismatches?

During the last two decades, skill mismatches have become one of the most important issues of policy concern in the EU (European Commission, 2008). Hence, the literature has stressed the necessity to reduce skill mismatches. We contribute to this literature by analyzing the impact of the transition from salaried employment to self-employment on self-reported skill mismatches. To do so, we resort to the European Community Household Panel (ECHP) covering the period 1994–2001. Using panel data, we track individuals over time and measure their self-reported skill mismatch before and after the transition. Our empirical findings indicate not only that the average self-employee is less likely to declare being skill-mismatched but also that those individuals who transit from salaried employment to self-employment reduce their probability of skill mismatches after the transition. Keywords: Self-employment, skill mismatches, salaried employment. JEL Classification: L26, J24, B23 __________________________

Banks, Lies and Bricks: The Determinants of Home Value Inflation in Spain during the Housing Boom

During the first decade of this century, Spain experienced the most important economic and housing boom in its recent history. This situation led the lending industry to dramatically expand through the mortgage market. The high competition among lenders caused a dramatic lowering of credit standards. During this period, lenders operating in the Spanish mortgage market artificially inflated appraised home values in order to draw larger mortgages. By doing this, lenders gave financially constrained households access to mortgage credit. In this paper, we analyze this phenomenon for this first time. To do so, we resort to a unique dataset of matched mortgage-dwelling-borrower characteristics covering the period 2004–2010. Our data allow us to construct an unbiased measure of property’s over-appraisal, since transaction prices in our data also includes any potential side payment in the transactions. Our findings indicate that i) in Spain, appraised home values were inflated on average by around 30% with respect to transaction prices; ii) creditconstrained households were more likely to be involved in mortgages with inflated house values; and iii) a regional indicator of competition in the lending market suggests that inflated appraisal values were also more likely to appear in more competitive regional mortgage markets. Keywords: Housing demand, appraisal values, house prices, housing bubble, credit constraints, mortgage market. JEL Classification: R21, R31

What explains productivity differentials across spanish cities?

This paper estimates the determinants of productivity differentials across urban areas in Spain. To do so we resort to Spanish Social Security administrative data (MCVL) matched with workers’ fiscal information. We use two-step approach that allows us to control for the confounding effects due to the sorting of more productive workers and more productive firms in bigger cities. Our results indicate that city size is a significant determinant of productivity differentials across Spanish urban areas. We estimate an elasticity of urban agglomeration of 3.3%, which is within the range of values already observed in other countries. We also find that the level of human capital, firm size and the level of industrial specialization also matters in order explain productivity differentials across Spanish cities. Keywords: Agglomeration, wages, productivity, city size. JEL codes: R10, R23, J31